FDI in Mexico Reaches $20 Billion in Q1 2025

Mexico attracted $20.3B in FDI during Q1 2025, with strong growth in manufacturing, led by the U.S. and key states like Mexico City and Nuevo León.

During the first quarter of 2025, Mexico attracted $20.31 billion USD in Foreign Direct Investment (FDI), marking a year-over-year increase of more than 9%. This growth was driven by a balanced mix of reinvested earnings, new equity investments, and intercompany accounts, highlighting investor confidence and sustained interest in the country’s industrial ecosystem.

Reinvested earnings lead the inflows

By investment type, reinvested earnings accounted for the largest share at $12.79 billion, followed by new investments with $4.93 billion, and intercompany accounts with $2.59 billion. This structure reflects the ongoing trust of existing foreign companies operating in Mexico, many of which are choosing to expand operations or strengthen their local presence.

United States and manufacturing drive capital flows

In terms of origin, the United States remained the top investor, contributing 51.2% of total FDI, followed by Germany (9.3%), Canada (6.8%), Japan (6.5%), and Spain (6.3%). These five countries together accounted for over 80% of the total investment received.

The manufacturing industry led the way sector-wise, attracting $10.36 billion—51% of the total—mainly in the automotive, auto parts, and computer equipment segments. The financial services and retail sectors followed. This trend underscores Mexico’s growing role as a strategic hub for global manufacturing, especially in the context of nearshoring.

Top investment destinations across Mexico

By region, Mexico City led FDI attraction with $6.04 billion, followed by Nuevo León ($2.87 billion), Jalisco ($2.17 billion), State of Mexico ($1.61 billion), and Chihuahua ($1.15 billion). These five states accounted for nearly 70% of national FDI, driven by industrial and logistics activities.

Mexico’s consolidation as a strategic investment destination reflects its competitive position in North America, backed by the USMCA trade agreement, robust industrial infrastructure, and a highly skilled workforce. This strong Q1 performance bolsters expectations for continued economic growth throughout the remainder of 2025.